share price means nothing when assesing value.
market cap represents the reality.
R S's are done for the sake of "image" and deception.
(even if Neil is correct about raising capital, the requirement of shareprice to be a certain level in order to raise money, is all "optics" )
the value remains the same ...again market cap ...what we are worth in total dollars on the market.
OK: so if we do a RS to attain the "optics" (or superficiality) on behalf of financers and the share price is at 20 cents:
then what happens ? ...well we then raise 3-4 million at 20 cents
(same dilution !!!)
then what happens next in the case of SPQ is as follows:
the share price goes back down to around 5 cents ... this is where daytraders and manipulaters will take it. FOR SURE !!
WHO WINS? the finaciers !! (...as they buy in at low prices ...after helping to manipulate the shareprice downward ...not hard to do, given the historic shareprice "optics" of SPQ and the support level at around 5 cents )
existing retail investors ALWAYS loose with reverse splits.
i have discussed this with Neil Novak: he does make hypothetical coments about the superficialities regarding share price and doing PP's.
he has also stated his respect of retail investors ....particualrily after what happened last year and the revolution by retail (which squashed the possibilty of such non-sense. )
cheers danny